As the name rightly suggests, loans against property are the credits secured against the Fixed deposits. It helps one to solve the problem of the financial crisis.
Eligibility of Loan against Fixed deposits:
All the fixed deposit holders can avail loan against FD
FD in the name of a minor and Investors of 5-year tax-saving fixed deposits does not qualify for this facility.
How does loans against FD works:
1. The amount of credit provided against fixed deposit by banks is 80% to 90% of the total fixed deposit value.
2. The interest rate charged on a loan of FD usually is in the range of 2% and 2.5%
3. Banks typically do not charge any kind of processing fees on loan against FD.
4. Repayment of the loans can be either lump sum or in instalments. But, the loan tenure should not exceed the duration of the Fixed Deposit held with the bank.
5. No penalty in case of foreclosure of the loan against FD.
Pros of loan against Fixed deposits:
1. It helps one to avoid the chance of closing the FD prematurely
2. The interest rates on loan against FD are lower than the personal loans.
3. Loans against FD can be availed against most FD.
4. The loan approval process of the loan against property is quick
5. There is no processing cost involved.
Read more: What is Loan against FD and its features and how does it works?
Eligibility of Loan against Fixed deposits:
All the fixed deposit holders can avail loan against FD
FD in the name of a minor and Investors of 5-year tax-saving fixed deposits does not qualify for this facility.
How does loans against FD works:
1. The amount of credit provided against fixed deposit by banks is 80% to 90% of the total fixed deposit value.
2. The interest rate charged on a loan of FD usually is in the range of 2% and 2.5%
3. Banks typically do not charge any kind of processing fees on loan against FD.
4. Repayment of the loans can be either lump sum or in instalments. But, the loan tenure should not exceed the duration of the Fixed Deposit held with the bank.
5. No penalty in case of foreclosure of the loan against FD.
Pros of loan against Fixed deposits:
1. It helps one to avoid the chance of closing the FD prematurely
2. The interest rates on loan against FD are lower than the personal loans.
3. Loans against FD can be availed against most FD.
4. The loan approval process of the loan against property is quick
5. There is no processing cost involved.
Read more: What is Loan against FD and its features and how does it works?
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